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21st Century U.S.-Egypt RelationsA Strategic Conference
May 2014
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BOARD OF DIRECORS
Te Honorable Gary Hart, Chairman
Senator Hart served the State of Colorado in the
U.S. Senate and was a member of the Committee
on Armed Services during his tenure.
Stuart Piltch
Stuart Piltch is the Co-Founder and Managing
Director of Cambridge Advisory Group, an
actuarial and benefits consulting firm based in
Philadelphia.
Norman R. Augustine
Mr. Augustine was Chairman and Principal
Officer of the American Red Cross for nine
years and Chairman of the Council of the
National Academy of Engineering.
Robert B. CroweRobert B. Crowe is a Partner of Nelson
Mullins Riley & Scarborough in its Boston and
Washington, DC offices. He is co-chair of the
firms Government Relations practice.
Brigadier General Stephen A. Cheney, USMC (Ret.)
Brigadier General Cheney is the Chief Executive
Officer of ASP.
Lieutenant General Daniel Christman, USA (Ret.)
Lieutenant General Christman is Senior Vice
President for International Affairs at the United
States Chamber of Commerce.
Lieutenant General John Castellaw, USMC (Ret.)
John Castellaw is President of the Crockett Policy
Institute (CPI), a non-partisan policy and research
organization headquartered in ennessee.
Nelson W. Cunningham
Nelson Cunningham is President of
McLarty Associates.
Lee Cullum
Lee Cullum, at one time a commentator on the
PBS NewsHour and All Tings Considered
on NPR, currently contributes to the Dallas
Morning News and hosts CEO.
Admiral William Fallon, USN (Ret.)
Admiral Fallon has led U.S. and Allied forces and
played a leadership role in military and diplomatic
matters at the highest levels of the U.S. government.
Te Hon. Donald Beyer
Te Hon. Donald Beyer is the former United
States Ambassador to to Switzerland and
Liechtenstein, as well as a former Lieutenant
Governor and President of the Senate of Virginia.
Raj Fernando
Raj Fernando is CEO and founder of
Chopper rading, a technology based trading
firm headquartered in Chicago.
Vice Admiral Lee Gunn, USN (Ret.)
Vice Admiral Gunn is the President of the
Institute of Public Research at the CNA
Corporation, a non-profit corporation in Virginia.
General Lester L. Lyles, USAF (Ret.)
General Lyles retired from the United States Air Force
after a distinguished 35 year career. He is presently
Chairman of USAA, a member of the Defense
Science Board, and a member of the Presidents
Intelligence Advisory Board.
Lieutenant General Claudia Kennedy, USA (Ret.)
Lieutenant General Kennedy was the first woman
to achieve the rank of three-star general in the
United States Army.
Dennis Mehiel
Dennis Mehiel is the Principal Shareholder
and Chairman of U.S. Corrugated, Inc.
Ed ReillyEdward Reilly is CEO of Americas of FD
International Limited, a leading global
communications consultancy that is part of FI
Consulting, Inc.
Governor Christine odd Whitman
Christine odd Whitman is the President of the
Whitman Strategy Group, a consulting firm that
specializes in energy and environmental issues.
Te Hon. Jeffery Bleich
Te Hon. Jeffery Bleich heads the Global Practice
for Munger, olles & Olson. He served as the U.S.
Ambassador to Australia from 2009 to 2013. He
previously served in the Clinton Administration.
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Panel 1: U.S.Egypt Strategic Relations Moving Forward
Te first panel o the 21st Century U.S. - Egypt Strategic Relations conerence, moderated
by Lara Jakes, brought together three distinguished guests to discuss the dynamic
relationship evolving between Washington and Cairo and how they can move orward.
Te panel included Senator Norm Coleman, Mr. Gamal Helal, and Congressman Jim
Kolbe, each o whom have extensive experience and background with Egypt and the
greater Middle East.
One main theme that was
apparent throughout eachspeakers presentation was
the need to strike a balance
between American values
(promotion o democracy,
human rights, etc.) and
stability. All o the speakers
reiterated the importanceo the U.S. Egyptian
relationship, citing the
protection o the Suez Canal, advancing Arab-Israeli peace, pursuing counter-terrorism
measures, and protecting the vital military-to-military relationship. However, the United
States cannot orget its core values, but instead balance that with our strategic interests.
From the U.S. standpoint, according to Gamal Helal, the strategic partnership with Egypt
should not be a partisan issue and we should seize the opportunity to swifly engage with
the new government. Egypt also has reason to maintain an amicable relationship with
the United States. Economic, security, and political assistance are desperately needed to
keep Egypt afloat afer 3 years o instability. Te U.S. is in the best position to provide
such assistance, which can urther improve our image in Egypt and the region as a whole.
One striking point made during the panel discussion was that ailure with Egypt is not
an option. Te strategic relationship is too important or both sides to ignore, and thereneeds to be an open and meaningul dialogue or each side to clariy their perception and
intentions or moving orward.
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Zack Gold: errorism and the Sinai
Zack Gold, a Middle East policy analyst rom the Brookings Institute, spoke
on terrorism in the Sinai Peninsula at the American Security Projects 21st
Century U.S. Egypt Strategic Relations conerence on May 7th, 2014.
In his presentation he spoke o
the dramatic increase in violence
in the Sinai since the popular
uprisings that ousted Hosni
Mubarak, as well as Mohammed
Morsi.
Since 2011, 700 policeman,
soldiers, and civilians have been
killed, 500 o those occurred
since 2013.
Mr. Gold lays out our reasons to explain the recent increase in violence in
the Sinai: security orces melting away afer Mubarak was ousted, recentmass jailbreaks o Salafi Jihadists, the release o detainees under the Supreme
Council o Armed Forces and Mohammed Morsi, and the Libyan uprising
that allowed or weapon stocks to be raided and smuggled into the Sinai.
Te majority o the near daily attacks that occur are by disgruntled Bedouins
and al-Qaeda inspired Jihadi groups who want to disrupt the relationship
between Egypt and Israel.
One o the most notorious o these groups is known as Ansar Bait al-Maqdis
(ABM), who take credit or the larger-scale attacks, such as the rocket-
propelled grenade on an Egyptian helicopter that killed five soldiers last
January.
Te Egyptian response, according to Mr. Gold, has involved Apache helicopter
attacks on villages and known terrorist hotspots, but is only a short-term
solution that will only perpetuate grievances and inspire more violent attacks
against the state.
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In reerence to the U.S. Egypt strategic relationship, Zack Gold
highlights a number o actions taken by the Egypt government in
which the U.S sees as counterproductive. For example, banning the
Muslim Brotherhood, essentially outlawing protests, the harassment
o non-Islamists civil society organizations, and the detention o
journalists, according to Mr. Gold, is very harmul or the strategic
relationship.
Expanding Egypts war on terror to include war on political dissent
has distanced the U.S. support or countering a terrorist threat in
Egypt. Zack Gold concludes by reiterating the mutual concern o
terrorism in the Sinai as an important issue or both Egypt and theUnited States, and should be a reason to strengthen the relationship
rather than let it alter.
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Panel 2: Counterterrorism and RegionalSecurity
Te second panel o the day, Counter errorism and Regional Security, had General
Carter Ham and Ambassador Youse al-Otaiba discussing the recent terrorism spike in
Egypt, its implications or the region, and what key issues both Cairo and Washington
can ocus on to overcome this terrorism threat.
o summarize General Ham, Egypt matters and the United States can find ways to help
the security threat by sending an ambassador to Cairo, help Egypt plan and conduct
regional security exercises throughout Arica, support the reintegration o Egypt with
the Arican Union, and look or opportunities to continue counter terrorism activities
in the Sinai. He finishes by saying that the relationship with Egypt is not a black and
white question, but is a complex one that must consider the United States strategic
interests, as well as promote its core values.
Ambassador Youse al-Otaiba
discussion ocused on the
act that Egypt must establish
stability beore it can trulysolve the economic issues
plaguing the nation. In order
or businesses to invest in, or
tourists to travel to, and or
Egyptians to believe in Egypt,
there must be a secure and
stable state.
Te Ambassidor believes that security is at the core o problems acing the nation, and
that or Egypt to thrive in the uture, terrorism must be combatted and regional security
established.
General Ham concluded the discussion by saying that establishing security and stability
is a necessary precursor to improving the economy, but it is how Egyptian security
orces establish stability that matters, and the new government must consider humanrights and be in accordance with the rule o law.
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Panel 3: Investment Climate andEntrepreneurship
Te third and final panel o the day, Investment Climate, and Entrepreneurship,
discussed the key economic changes Egypt will need to go through, as well as the
uture o business and growth sustainability.
Egypt is the largest
economic market in the
Middle East, with over
90 million people. An
open and competitiveeconomy, a politically
stable government,
and the potential or
investment rom nations
around the world will be
key in the growth and
sustainability o Egypt.
Te distinguished panelists included Nelson Cunningham, Dante Disparte, Khush
Chosky, and Basil El Baz.
Dante Disparte set the tone or the discussion by saying no matter where you stand
politically, economics will punish you. Egypt must establish a pathway orward that
encourages investment and creates jobs. Te driver behind Egypts way orward is
small and medium enterprises (SMEs).
According to Basil El Baz Egypt has the basic undamentals to provide jobs, but
lacks investment and the economic reorms to acilitate growth. His solution
is to increase education on entrepreneurship on a wide scale to promote the
development o SMEs, something the United States could easily partner with.
Being a successul Egyptian entrepreneur himsel, whose company is now the
largest investor in post-revolutionary Egypt, El Baz challenges the concept that
Egypt is hard to work in. His projects, having been developed in a complicated
market, established a well-balanced structure that allows his company to flourish.
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El Baz believes Egypt has the proper model to develop a highly efficient economy.
Using an anecdote about South Korea modeling their system afer Egypt decades
ago, El Baz stresses that Egypt simply needs to make the proper decisions to ensure
that their own model works. El Baz said, Trough reorm, through structure you
can establish practically any economic goal as the South Koreans did, who now
have a highly developed economy.
Mustaa Abdel-Wadood, however, reminds us o the set o harsh realities in
Egypt political transition, unemployment, and lack o investment that only
hinder long-term challenges such as growth, employment, and education. Egypt
has deteriorated over the past ew years and remains an uncertain market. Khush
Choksy lists 5 economic issues that must change or Egypt to move orward andencourage investment: (1) a comprehensive economic policy must be enacted, (2)
there must be a reorm in the bureaucracy, (3) a genuine public- private sector
dialogue must take place, (4) business best practices must be instituted, and (5)
there should be a government-to-government dialogue between Egypt and the
U.S.
Despite the challenges ahead and the tone presented in the media, each panelists
remains ervently optimistic about the uture o Egypt. Basil El Baz described
discipline as one o the main keys to Egypts success and he believes that with
discipline you can navigate through any turbulent time.
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Interview with H.E. Amr Moussa
During last months 21st Century U.S. Egypt Strategic Relations Conerence
ASPs Paul Hamill sat down with H.E. Amr Moussa, the elected president o the
committee o 50 responsible or drafing a new constitution in Egypt.
Te committee o 50
represented all segments o
Egyptian society that authored
the new constitution, which
was subsequently approved in
a reerendum in January 2014.
According to Moussa, this
new constitution will orm
the basis o the new political
lie and is the start o a very
important roadmap that will
guide Egypt towards stability.
All o us should ollow the steps established by the new constitutionthis is our
guide to the new Egypt.
Egyptians eel that the ailure o previous governments must be reversed and
replaced with solid management based on the principles established in the
constitution, and Moussa expressed a sense o optimism or this and the uture o
Egypt, citing the upcoming presidential and parliamentary elections as the next
vital steps along Egypts roadmap to success.
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Te Speakers
U.S.Egypt Strategic Relations Moving Forward
Lara Jakes is an award-winning correspondent or Te Associated Press inWashington, where she currently is a senior national security writer and based at theState Department. Jakes worked or three years as a oreign correspondent based inIraq, including one year as AP Chie o Bureau in Baghdad. She has covered war andsectarian fighting in Iraq, Aghanistan, the West Bank, and Northern Ireland.
Jakes was a homeland security ellow at the Knight Center or Specialized Journalismat the University o Marylands Phillip Merrill College o Journalism. She is a 1995graduate o the University o Missouris School o Journalism and pursuing a mastersdegree in oreign relations at the Maxwell School o Citizenship and Public Affairs at
Syracuse University.
Senator Norm Coleman is a Senior Government Advisor at Hogan Lovells US LLP,counseling clients on a wide range o regulatory and government affairs issues. Hepreviously served as a U.S. Senator, representing Minnesota rom 2003 2009. Priorto his election to the U.S. Senate, Senator Coleman was the mayor o St. Paul, MNrom 1994 2002.
During his six years in the U.S. Senate, Senator Coleman served on the prestigious
Foreign Relations Committee. He was Chair o the Western Hemisphere subcommitteeand ranking member o the Near East subcommittee, working to oster closer tieswith our hemispheric neighbors and protect Americas interests in the crucial MiddleEast region. Senator Coleman also co-chaired the Senate Bio-Fuels Caucus and servedon the Senate Agriculture Committee. He currently serves as Chairman o the Boardo the American Action Network in Washington, D.C.
Gamal Helal is a ormer translator and advisor to the last our U.S. Presidents andsix Secretaries o State. Helal began as an Arabic interpreter in the Department o
State, and played a critical role during talks with Iraq beore the Gul War. In 1993, hebecame the senior diplomatic Arabic interpreter in the Department.
He was integral part o U.S relations with the Middle East, serving as the seniorMideast adviser to every President since George H. W. Bush. He was also involved asan Arabic interpreter in every recent major peace talk, notably the 2000 talks betweenIsraeli Prime Minister Ehud Barak, and Palestinian Chairman Yasser Araat. Helalwas also a key player during communications with leaders in the Middle East afer theWorld rade Center bombings in 2001.
He served as an interpreter in Arabic language communications with Middle Easternleaders to work through the difficult time and promote cultural understanding.
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Congressman Jim Kolbe is currently serving as a Senior ransatlantic Fellow at theGerman Marshall Fund o the United States, and as a Senior Advisor to McLartyAssociates, a strategic consulting firm. Recently, President Obama appointed himto the Advisory Committee or rade Policy and Negotiations, where he providespolicy advice on trade matters. Jim Kolbe is also a co-Chair o the Modernizing
Foreign Assistance Network (MFAN), a reorm coalition composed o internationaldevelopment and oreign policy practitioners, policy advocates and experts, concernedcitizens and private sector organizations.
For 22 years, Jim Kolbe served in the United States House o Representatives,elected or eleven consecutive terms, rom 1985 to 2007. He represented the Eighth(previously designated the Fifh) congressional district, comprising the southeasternpart o Arizona with ucson as the main population area. While in Congress, Jimserved or 20 years on the Appropriations Committee o the House o Representatives.He was chairman o the reasury, Post Office and Related Agencies subcommittee orour years, and or the last six years in Congress, he chaired the Foreign Operations,Export Financing and Related Agencies subcommittee.
Terrorism and the Sinai
Zack Gold is an accomplished researcher and writer on U.S. Middle East policy,specifically concerning threats to Egyptian and regional security rom Sinai andGaza. He is the author o recent analysis papers on Sinai terrorism and security
cooperation or the Brookings Institutions Saban Center or Middle East Policy andthe International Centre or Counter-errorism - Te Hague.
Previously, Gold was a research associate at the Institute or Foreign Policy Analysiswhere he wrote papers or the Deense Treat Reduction Agency and US Marine Corps.He also conducted counter-terrorism research at the International Policy Instituteor Counter-errorism in Israel. Gold obtained his M.A. in law and diplomacy romTe Fletcher School at ufs University and twice received the Department o StatesCritical Language Scholarship to study Arabic in Oman and Egypt.
Counterterrorism and Regional Security
Lieutenant General John Castellaw USMC (Ret.) is a retired Lieutenant General othe US Marine Corps. As a Marine Aviator, he flew more than two dozen differentaircraf including the CH-46E SEAKNIGH, the AV-8B HARRIER and the MV-22A OSPREY. During his 36 year career, he held several commands including MarineMedium Helicopter Squadron 264, Marine Aviation Weapons and actics Squadron1, the 3d Marine Expeditionary Brigade, U.S. FORCES EAS IMOR, and the 2dMarine Aircraf Wing.
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As a staff officer, he served on several high level military staffs in Europe, the Asia-Pacific and the Middle East.
As a veteran, he is a member o the Marine Corps League, Te Marine CorpsAssociation, and Te Naval Institute and is beginning his first term as the National
Commander o the Marine Corps Aviation Association.
General Carter F. Ham USA (Ret.) is the ormer Commander o U.S. AricaCommand and Commanding General o U.S. Army Europe and 7th Army.
He has held a variety o positions to include Recruiting Area Commander;Battalion Executive Officer at the National raining Center; Advisor to the SaudiArabian National Guard Brigade; Commander, 1st Battalion, 6th Inantry; Chieo Staff, 1st Inantry Division; Commander, 29th Inantry Regiment; commander,
Multi-National Brigade, Mosul, Iraq; Commander, 1st Inantry Division; Directoror Operations, J-3, Te Joint Staff, Washington, DC.
General Hams military education includes the Armor Officers Advanced Course,Naval College o Command and Staff, graduating with distinction, and the U. S.Air Forces Air War College.
His awards and decorations include Army Distinguished Service Medal, DeenseSuperior Service Medal with three oak lea clusters, the Legion o Merit with two
oak lea clusters, the Bronze Star Medal, and the Joint Service CommendationMedal.
H.E. Ambassador Yousef Al Otaibahas been the United Arab Emirates Ambassadorto the United States since July 2008. Beore being appointed as Ambassador, heserved seven years as the Director o International Affairs or the court o theCrown Prince o Abu Dhabi, where he was a senior advisor to the Mohammedbin Zayed Al Nahyan. During that time, Al Otaiba helped strengthen the UAEssecurity and economic relations throughout the region.
Most recently, Ambassador Al Otaiba has helped guide Abu Dhabis leadership inmultinational discussions on best practices or sovereign wealth unds. Tis activitywas an extension o Ambassador Al Otaibas efforts to promote and deepen traderelationships between the UAE and other government, commercial, and privatesector entities. For several years, Ambassador Al Otaiba has acilitated meetingsbetween the UAE and other oreign economic interests, which have resulted innumerous mutually beneficial cooperative and partnership agreements.
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Investment Climate and Entrepreneurship
Nelson Cunningham is President o McLarty Associates, the internationalstrategic advisory firm headed by ormer White House Chie o Staff andSpecial Envoy or the Americas Tomas F. Mack McLarty III. Cunningham
was also Special Advisor to President Clinton or Western Hemisphere Affairsand previously served as a counsel at the White House and as General Counselo the Senate Judiciary Committee under Senator Joseph Biden. Prior to that,he was a ederal prosecutor in New York under then-U.S. Attorney RudolphGiuliani and also served as a oreign policy and trade advisor to the 2004 Kerrycampaign.
Cunningham is an active member o the boards o the Institute o theAmericas, the American Security Project, the Atlantic Council, and the U.S.-
India Business Council, and is a member o the Yale Presidents Council onInternational Activities, the Department o States Advisory Committee onInternational Economic Policy, the Council o the Americas, and the Councilon Foreign Relations.
Basil ElBazis the Chairman & Chie Executive Officer o Carbon Holdings.He has successully developed and financed two major industrial greenfieldprojects in Egypt; Egypt Basic Industries Corporation (EBIC) and EgyptHydrocarbon Corporation (EHC). EBIC represents and still is the only
project to receive a comprehensive loan guarantee rom the Export ImportBank o the United States. Furthermore, EBIC is one o a select number oprojects in Egypt to be financed entirely by consortium o international banks.Te project has an approximate value o US$650 million. Carbon Holdingssecond project, EHC, with a transaction value o approximately US$500million is widely considered as the first major industrial project to close inpostrevolution Egypt. Construction o the second project commenced inAugust 2011 with commercial operation scheduled to commence during the
ourth quarter o 2014. In December 2012, Carbon Holdings concluded itsUS$114 million acquisition o the Egyptian polypropylene producer, OrientalPetrochemicals Company (OPC).
Most importantly, Carbon Holdings is developing a US$6.75 billion NaphthaCracker and Polyethylene Complex project named ahrir Petrochemicals thatis currently in an advanced stage o financing. Te project is anticipated obeing financed entirely by the Export Import Bank o the United States, theExport Import Bank o Korea, the Korea rade Insurance Corporation and
SACE, the export credit agency o Italy. Mr. ElBaz is a graduate o HarvardUniversity.
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Prior to that he spent eight years at Orascom Group as Director o Developmentand Investments. Mr Abdel-Wadood has served on the Boards o several publiclylisted and private companies.
In 2002, the World Economic Forum named Mr Abdel-Wadood a Global Leader
or omorrow and in 2007 named him a Young Global Leader.
He is also a member o the Young Presidents Organization. He graduated inBusiness Administration rom American University and holds an MBA romGeorgetown University.
Amr Moussa is a leading Egyptian politician and diplomat who was the Secretary-General o the Arab League rom 2001 to 2011. Moussa has played an active role inormulating Egypts oreign policy ever since obtaining his law degree rom CairoUniversity in 1957. From 1991 to 2001, he served in the government o Egypt asMinister o Foreign Affairs rom 1991 to 2001. He has also served a total o 21 yearscombined as Egypts ambassador to the United Nations, India, and Switzerland.
Last September, he was elected president o the committee o 50 representingall segments o Egyptian society that authored the new constitution, which wassubsequently approved in a reerendum in January 2014.
ASP would like to thank Carbon Holdings.
PUBLISHED JULY 2014
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Te American Security Project (ASP) is a nonpartisan organizationcreated to educate the American public and the world about the changingnature of national security in the 21st Century.
Gone are the days when a nations security could be measured bybombers and battleships. Security in this new era requires harnessingall of Americas strengths: the force of our diplomacy; the might of ourmilitary; the vigor and competitiveness of our economy; and the powerof our ideals.
We believe that America must lead in the pursuit of our common goalsand shared security. We must confront international challenges with
our partners and with all the tools at our disposal and address emergingproblems before they become security crises. And to do this we mustforge a bipartisan consensus here at home.
ASP brings together prominent American business leaders, formermembers of Congress, retired military flag officers, and prominentformer government officials. ASP conducts research on a broad rangeof issues and engages and empowers the American public by taking its
findings directly to them via events, traditional & new media, meetings,and publications.
We live in a time when the threats to our security are as complex anddiverse as terrorism, nuclear proliferation, climate change, energychallenges, and our economic wellbeing. Partisan bickering and age oldsolutions simply wont solve our problems. America and the world -needs an honest dialogue about security that is as robust as it is realistic.
ASP exists to promote that dialogue, to forge that consensus, and to spurconstructive action so that America meets the challenges to its security
while seizing the opportunities that abound.